By Suzanne Sangiovese/ AI is no longer just an emerging trend in travel – it’s a driving force behind smarter, more seamless experiences. It’s proving valuable in destination research and itinerary optimization, as well as transforming how businesses and travellers engage with services. From tailored trip planning to streamlined customer support, intelligent solutions are redefining how the industry operates and meets diverse travel needs.
A recent Global Rescue survey reveals that nearly 70% of travellers who use AI found it “very useful” or “mostly useful.” About 44% used the technology for basic research and 36% used it for itinerary suggestions based on trip length, activities or budget.
Personalizing travel experiences
Canada’s vast geography and regional diversity present unique challenges for travel companies, from varying infrastructure to language differences. Artificial intelligence helps address these complexities by providing hyper-personalised travel options that reflect local preferences. For business, it can accommodate multilingual needs, streamline itineraries, and enhance accessibility, making corporate travel more efficient and inclusive across the country.
AI also allows businesses to customize itineraries based on individual preferences such as weather, local events or specific professional needs. Whether travelling for a conference in Toronto or a meeting in Vancouver, it can help ensure that plans are optimized for comfort and efficiency.
Additionally, AI fosters inclusivity for corporate travellers with diverse needs, including LGBTQ+ travellers and travellers with disabilities. For instance, it can identify accessible accommodations, recommend LGBTQ+ friendly areas or suggest services like wheelchair-accessible airport transportation, ensuring a smooth experience for all.
The benefits and limitations of AI in travel
The advantages of AI-powered travel are clear: increased efficiency, customized service and the ability to handle large volumes of data to optimize travel recommendations. AI technologies can reduce operational costs by automating tasks such as booking and customer inquiries, freeing up staff to focus on more complex issues.
From a financial perspective, companies using AI in their online services have seen significant revenue increases. Tripadvisor tripled its average revenue per customer within three months of launching an interactive service that includes AI in presenting its services online.
Artificial Intelligence enables businesses to make more data-driven decisions, such as optimizing pricing in real time based on demand patterns or improving how travel risk alerts are generated and prioritized. AI-powered tools can rapidly collect and process data from thousands of sources, filtering out irrelevant or unreliable information. By refining this process, AI ensures that only the most critical and relevant updates are considered for alerts, allowing businesses to respond swiftly to emerging risks and provide more accurate guidance to travellers.
As AI adoption expands in the travel sector, ethical considerations, particularly around data privacy, remain a key concern. In Canada, privacy laws like PIPEDA (Personal Information Protection and Electronic Documents Act) regulate data collection and use, making compliance essential for AI-driven travel solutions.
Another primary concern is the over-reliance on technology, which increases exposure to scams, cyberattacks and operational failures. Bad actors can misuse the technology for deepfakes, identity theft and deceptive guidance, compromising traveller security and privacy. For travel companies, technical malfunctions can disrupt services and harm their reputation.
Other challenges include the lack of skilled professionals, the absence of a clear AI strategy in many business plans and the insufficient technological infrastructure. There’s also a risk of losing the human touch. Automated systems might result in biased recommendations and a less empathetic customer experience. Additionally, there is the concern of job losses in the industry, as well as the environmental impact of AI’s high energy use.
New opportunities for travel businesses
AI provides travel businesses with new opportunities to stay competitive in a rapidly evolving market. By embracing it, companies can better serve both domestic and international travellers, delivering solutions that are faster, more responsive and tailored to specific needs. With unpredictable weather conditions, political unrest or health concerns like virus outbreaks, AI can help businesses assess risks and adjust their offerings to ensure traveller safety. This proactive approach can drive better customer retention and confidence.
The long-term impact of AI in the travel industry is poised to be transformative. As AI technology advances, its ability to provide personalized and seamless travel experiences will continue to grow. However, businesses must balance the benefits of innovation with ethical considerations and responsible AI governance to ensure long-term sustainability and create value for all travellers.
(Suzanne Sangiovese is Director of Travel and Technology at Riskline, an intelligence provider focused exclusively on travel)
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